Internal Reconditioning and Rigging |
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peach
Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295 |
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Posted: 11-Apr-2012 at 05:17 |
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This system covers the situation where a “unit” (motorcycle, boat, engine etc) is put into the workshop and worked on. Parts and/or labour are used and the cost of the unit is increased. Situations include Servicing or reconditioning used motorcycles, boats, vehicles, engines, mowers etc Rigging new boats Assembling or enhancing new motorcycles The value (ie cost ex GST) of the unit is increased by the cost of the parts and the value of the labour used. The transaction is processed through the normal workshop system. Setting up the system for this process requires the following – 1. In Customer Control, an “InHouse” customer used as the owner of the units. 1. The unit is set up as a part in Product Control, as usual. A standard system for stock codes makes it easier. Eg MCU001, 002 etc for Used motorcycles numbered 001, 002 etc. Or use the VIN , HIN or Serial number for a vehicle, boat or engine. Remember to select an appropriate Group code. 2. The job is then processed as a Workshop Invoice in the normal way. Note that you may alter the labour rate for these In-House jobs. When the invoice is finalised, the payment type will default to “Account” Select “Account” manually if required. If you have “Departments” set up, ensure you have a Department for In House Reconditioning or similar, with a GL Code for Stock On Hand at Cost (eg 1800) After finalising the workshop invoice, you can check to see – The Transaction can be viewed under Product Control by clicking on the Transactions button (F5) The “InHouse” customer will also show the transaction in Customer Control, again click the Transaction button (F5) to view the transaction. There is no balance on the customer “account”. Likewise the transaction can be viewed from Workshop Control LEDGER TRANSACTIONS
For the ledger Transactions to be posted, two new Control Accounts need to be created (once off) Create a new Income account for Internal sales of Workshop Labour, and a new Direct Expense account for the Cost of Reconditioning These ledgers act to balance the “Income” and “Expenses” of the process. Enter these into the GL Control Accounts under “Internal Labour” and “Internal Charges” The General Ledger transactions are then
Stock on Hand and Closing Stock are updated for the parts used from Stock. Stock on Hand is debited (increased) by the increased value of the unit, Closing stock is likewise Credited. Internal Labour sales (income) is credited (increased) by the value of the labour used. Purchases (expense) is credited for the parts taken out of stock for internal use. Internal Workshop Direct Expense (ie “cost” of parts & labour) account “balances” the credits to the Purchases account and the Workshop Labour account. Edited by Susmita - 15-Jan-2007 at 06:33 |
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